Pandox’s financial and liquidity position is very strong. Per 16 March 2020, liquid funds and unutilised credit facilities amounted to approximately MSEK 4,500. Pandox’s financial covenants are mainly based on loan to value and interest coverage ratios at comfortable levels and can be cured. Pandox can therefore withstand a considerable decrease in business activity in the Company’s markets.

Pandox follows and evaluates the business situation continuously and has a close dialogue with business partners in the business segment Property Management regarding earnings development and liquidity for respective party. Contractual minimum guaranteed rent and fixed rent amount to approximately 2,000 MSEK on an annual basis. Minimum guaranteed rent is accumulated and normally settled half-year and full year.

Pandox has taken powerful actions in the business segment Operator Activities in form of staff reduction and increased coordination of operations between the hotels. Furthermore, temporary closures of certain hotels are planned in Belgium and Germany. The business situation on each individual market is continuously evaluated with due consideration for Pandox’s guests and coworkers, as well as government demands.

Planned investments in the existing hotel property portfolio has been reduced. The focus is on finalising already ongoing projects. In total, planned investments for the current year amount to approximately MSEK 550, of which approximately MSEK 50 is maintenance.

As a consequence of deteriorating business conditions and the large uncertainty regarding the market development, Pandox’s board of directors has decided to withdraw the previous dividend proposal for 2019 to the AGM in the amount of SEK 3.60 per share, in order to further strengthen the Company’s financial position.